THUNDER BAY – Real Estate – Thunder Bay continues to have a hot housing market. That has become the ‘new stability’ in Thunder Bay. It is about to be matched with stable housing starting in Ontario and across Canada according to the Canada Mortgage and Housing Corporation (CMHC).
The CMHC expect the number of housing starts to stabilize in 2014 and 2015. Support from improved economic and demographic fundamentals will be tempered by a combination of a modest and gradual increase in mortgage rates and a slowdown in demand from first-time buyers, according to CMHC’s first quarter 2014 Housing Market Outlook, Canada Edition.
“With a relatively high number of units currently under construction, we expect builders will gradually adjust their activity in order to reduce their level of inventory,” said Mathieu Laberge, Deputy Chief Economist for CMHC. “Housing demand for resale market homes will continue to be sustained despite expected modest and gradual increases in mortgage rates toward the end of the forecast horizon,” added Mathieu Laberge.
Ontario Regains Momentum
Ontario housing activity has regained some momentum which will persist into early 2014 before easing later this year, according to the First Quarter 2014 CMHC Housing Market Outlook – Canada Edition released today. After slowing in 2013, Ontario annual home starts will stabilize and range between 56,700 to 64,200 units in 2014.
“An improving economy through 2014/15 and less out-migration to western Canada will provide support to the broader Ontario housing market despite gradually higher mortgage rates. Housing activity will stabilize over the forecast horizon but resale housing should outperform. A growing stock of existing housing, owing to more new home completions, will provide more choice and support for the less expensive existing home market,” said Ted Tsiakopoulos, CMHC’s Ontario Regional Economist.
Ontario existing home sales will gradually lead the market higher with MLS(R) sales growing to 199,600 and 203,400 units in 2014 and 2015 respectively. MLS(R) sales will range between 186,600 to 212,600 units this year. Ontario home prices will grow at a slower rate over the forecast horizon.